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Boggs Kurlander Steele, LLC v. Horizon Communications, Inc.

Citation: Not availableDocket: M2006-00018-COA-R3-CV

Court: Court of Appeals of Tennessee; February 20, 2008; Tennessee; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case reviewed by the Court of Appeals of Tennessee involved the termination of a cable service contract between Boggs Kurlander Steele, LLC (B.K.S.) and Horizon Communications, Inc. The trial court had ruled in favor of B.K.S., declaring the contract validly terminated due to Horizon's material breach, and dismissed Horizon's counterclaims. On appeal, Horizon challenged several findings, including the waiver of Kentucky law, the determination of a material breach, and the award of attorney’s fees. The appellate court found that B.K.S. waived its right to have the case adjudicated under Kentucky law and upheld the trial court’s findings that Horizon materially breached the contract by failing to provide adequate cable service. The court confirmed the contract termination and ruled that Horizon was not entitled to damages, as it failed to demonstrate concrete evidence of losses. The appellate court also affirmed the award of attorney’s fees to B.K.S. and remanded the case for the assessment of appellate attorney’s fees. Consequently, the trial court's judgment was affirmed, establishing B.K.S. as the prevailing party.

Legal Issues Addressed

Award of Attorney's Fees

Application: The court upheld the trial court’s decision to award attorney’s fees to the Appellee as the prevailing party, while denying them to Horizon.

Reasoning: The court also affirmed the award of attorney’s fees to the Appellee.

Entitlement to Damages

Application: Horizon was found not entitled to damages due to its own material breach preceding the claimed breaches by the Appellee, and the lack of evidence of concrete damages.

Reasoning: Therefore, Horizon is not entitled to damages related to B.K.S.’s failure to report new residents after that date.

Material Breach of Contract

Application: The trial court concluded that Horizon materially breached the contract by failing to deliver a functioning cable system within the stipulated timeframe, which was determined to be central to the contract's purpose.

Reasoning: The trial court found that Horizon materially breached the contract by failing to deliver a functioning cable system within six months and not adhering to installation requirements.

Termination of Contract Due to Breach

Application: The court affirmed that the contract was rightfully terminated by the Appellee after Horizon failed to cure the breaches within the specified 45-day notice period.

Reasoning: Consequently, B.K.S. rightfully terminated the contract on September 13, 2004.

Waiver of Contractual Rights

Application: The appellate court found that the Appellee waived its right to enforce Kentucky law, as the case was adjudicated under Tennessee law due to a lack of sufficient legal authority supporting its position under Kentucky law.

Reasoning: The appellate court found that the Appellee had indeed waived its right to enforce Kentucky law.